09 Oct

Daily Watch – NNPC subsidiary makes a killing, Pipelines slow down Apapa roadworks

  • The NNPC says one of its subsidiaries. the Nigerian Gas Processing and Transportation Company (NGPTC) declared a profit after tax of ₦15.81 billion in 2016. In a statement by its spokesman Ndu Ughamadu, the NNPC said the profit was due to a write-back of deferred tax of ₦8.05 billion in 2015 and part of the dividends of the company’s ongoing transformation programme. The Chairman and COO of the NGPTC, Saidu Mohammed, disclosed that the profit before tax for the year ended December 31, 2016, was ₦24.4 billion as against ₦20.9 billion in 2015. “This represents an increment of 16.8 percent, while the profit after tax reduced from ₦22.6 billion in 2015 to ₦15.81 billion in 2016. Also, earnings per share reduced from ₦4,510 in 2015 to ₦3,163 for 2016. The total revenue generated from gas sold and transmitted during 2016 amounted to ₦219.5 billion as against ₦155.5 billion in 2015, representing a 41 percent increase over the previous year,” he said. Ughamadu said that the increase was due to revenue generated from application of higher transportation tariff and new commercial customers that came on stream.
  • Political involvement in the management of the NNPC can lead to rapid turnover in key staff, creating difficulties in the ability to execute strategic initiatives, a new report by the PricewaterhouseCoopers has said. The PwC report, entitled, ‘The new nation builders: Creating the African national oil company of the future,’ said the NNPC’s financial position had been a problem given the low oil price environment, as with other national oil companies. It said even though the NNPC obtained funds from diverse sources, including the government, financial institutions and dividends, the low oil price had led to an inability to meet cash calls on a number of joint ventures. “Issues relating to business irregularities (for example, sales of crude by non-approved entities) may have impacted the inflow of investment,” the report said. The PwC analysts, however, said the corporation’s comprehensive business operations across the value chain had enabled it to develop strong technical and operational capabilities and to mitigate operational costs and reduce dependence on third parties.
  • Kaduna Governor, Malam Nasir El-Rufai, on Saturday presented the 2018 draft budget estimates to citizens of the state at a town hall meeting in line with his open governance policy. The state government in the budget proposed to spend ₦201 billion in 2018 comprising of ₦125.5 billion as capital expenditure and ₦75.548 billion as recurrent expenditure. According to Daily Trust, the Saturday town hall presentation was to allow the state’s citizens make their inputs in the budget after which the State Executive Council will approve the final estimate on Monday 9 October. Governor El-Rufai is also expected to present the final draft estimate to the State Assembly on 12 October for consideration and passage into law. Speaking at the presentation of the budget estimate at the town hall meeting which held at Umuru Musa Yar’adua Hall, Murtala Square in Kaduna, El-Rufai urged the people to suggest projects they want the government to execute for them, saying that the budgets for 2016 and 2017 were raised after citizens’ recommended projects. According to the State Budget and Planning Commissioner, Muhammad Sani Abdullahi, the 2018 budget targets the completion of capital projects which began in 2017 as well as the delivery of public goods as outlined in the State Development Plan (2015-2020).
  • The Managing Director of AG Dangote Construction Company, Ashif Juma said the firm has begun relocation of gas pipelines slowing down the Apapa-Wharf Road reconstruction project. Juma said that the construction work was divided into four sections. According to him, work is currently going on simultaneously in two sections. He said that gas pipes in the Right of Way areas had slowed down the project for more than two months. Juma identified the high traffic in the area as one of the challenges affecting the project, adding that a team of traffic consultants were handling this to ensure it does not affect construction work. In his words, “We are working with the Federal Ministry of Power, Works and Housing and Gaslink to relocate some pipes under the drains. Nobody was aware of the pipes when we began the project because this road was constructed over 40 years ago.” According to him, “We need to dig deep to lay the foundation for a good concrete road but the gas pipes have not allowed us to do that so, we have been working on other sections. After this relocation, we will do a good job as we have done in over 21 countries, building durable concrete roads. “We only appeal to people of Lagos to be patient with us because this portion we are constructing will last more than 50 years.” He assured that by the end of October, the public would begin to see a visible concrete road. Juma added that as the rainy season winds up, construction activities would be intensified to ensure the project was delivered on schedule. “In spite of the challenges, we want to complete the road by June 2018,” he said.